Annual Report 20Annual17 Report 2017 PETROBANGLA Bangladesh Oil, Gas and Mineral Corporation Annual Report 2017 PETROBANGLA Petrocentre, 3 Kawran Bazar Commercial Area Dhaka-1215, Bangladesh, GPO Box No-849 Tel : PABX : 9121010-16, 9121035-41 Fax : 880-2-9120224 E-mail : [email protected] Website : www.petrobangla.org.bd Petrobangla Contents Message of the Adviser (Minister) to the Hon’ble Prime Minister 04 Message of the Hon’ble Minister of State, MoPEMR 05 Message of the Secretary, EMRD 06 Introduction by Chairman, Petrobangla 07 Board of Directors (Incumbent) 10 Past and Present Chairmen of Petrobangla 11 The Genesis and Mandate 12 Petrobangla and the Government 14 A Brief History of Oil, Gas and Mineral Industry in Bangladesh 16 Activities of Petrobangla 19 Companies of Petrobangla 39 Development Programmes for FY 2016-17 56 Future Programmes 60 Data Sheets 62 Statement of Financial Position 70 Statement of Profit or Loss and Other Comprehensive Income 71 02 Annual Report 2017 To provide energy for sustainable economic Our growth and maintain energy security of the Vision country Our Mission To enhance exploration and To provide indigenous exploitation of natural gas primary energy to all areas and all socio economic groups To diversify indigenous To develop coal energy resources resources as an alternative source of energy To promote CNG, LNG and To contribute towards LPG to minimize gas environmental demand and supply gap as conservation of the well as to improve country environment To promote efficient use of gas with a view to ensuring energy security for the future Annual Report 2017 03 Petrobangla Tawfiq-e-Elahi Chowdhury, BB, PhD Adviser (Minister) to the Hon’ble Prime Minister Power, Energy & Mineral Resources Affairs Government of the People's Republic of Bangladesh. Message The role of energy in the overall development of countries like Bangladesh hardly needs emphasis. Petrobangla and its companies have been playing the dominant role in exploration, production, transmission, distribution and development of the two vital sources of energy - gas and coal in the country. I trust the Annual Report 2017 would document its continued efforts in discharging those responsibilities. The Father of the Nation Bangabandhu Sheikh Mujibur Rahman bought five gas fields from British oil company, Shell Oil, at a nominal price on 09 August, 1975 for ensuring energy security of the country. Following the path of development envisaged by the Father of the Nation, his worthy daughter, Prime Minister Sheikh Hasina, has also given the country's energy security one of the highest priorities. Extensive development programs were implemented during the last eight and a half years resulting in remarkable growth in the production and distribution of gas. The settlements of maritime boundaries with our neighbors have opened new possibilities for energy resources. Petrobangla is earnestly pursuing initiatives to harness the potentials from the 26 blocks in deep and shallow seas, covering of 19.5 thousand square kilometers. Alongside, energy efficiency and conservation measures should be strengthened. Customers should be encouraged to explore and adopt newer ways for cogeneration and trigeneration in the use of energy. In order to augment energy supply and thereby support the development of Bangladesh, Petrobangla is about to add LNG for which two FSRUs are being implemented-one is just about to start operation. I hope the dedicated workforce of Petrobangla and its subsidiary companies will continue to be significant contributor to the prosperity of Bangladesh. My felicitations to the officials associated in the publication of the Annual Report 2017. I wish Petrobangla continued success. Joy Bangla, Joy Bangabandhu Long Live Bangladesh Dr. Tawfiq-e-Elahi Chowdhury, Bir Bikram 04 Annual Report 2017 Nasrul Hamid MP Minister of State Ministry of Power, Energy & Mineral Resources Government of the People's Republic of Bangladesh Message Indeed, I am glad to know that Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) is going to publish its Annual Report, 2017 encompassing the activities of the organization and its companies for the FY 2016-17. I welcome to all who are related to publish this time demanding report. Bangladesh has engineered a unique development paradigm of steady economic growth with broad range of improvements in the life of citizens as demonstrated by the human development indicators. At its heart is the visionary and focused leadership of Prime Minister Sheikh Hasina. The country has already achieved low middle income status and is in the cusps of becoming middle income by 2021. Energy plays a pivotal role in the developmental transformation process. Petrobangla, as the apex organization in providing primary energy to diverse users- power plants, industries, commercial concerns and others, has been assigned this key responsibility. Despite remarkable increase in the gas supply capacity during the tenure of present government, the supply and use of fuel are to be increased manifold. In order to explore new gas fields for meeting the rising energy demand, initiatives are underway to implement various work including ramping up of production, transmission and distribution capacities and import of LNG. Initiation has been taken by the government to drill 108 wells in onshore by 2021. The drilling programme of Bhola North has successfully completed and it has been declared as the 27th gas field of the country. Test production at the gas field has began on 27 January, 2018. Import liquefied natural gas (LNG) in order to meet the growing demand of gas against a backdrop of its shortage is now a reality. LNG imports are the foremost among the preferential mega projects taken up by the government. On 6 May, 2017, the Hon'ble Prime Minister laid down the foundation stones for installation of 2 separate floating LNG terminals at Moheshkhali for supplying 500 MMSCFD of LNG each and expected to be commissioned by July and October, 2018 respectively. Besides this, Petrobangla has already started its activities to install one or more land based/floating LNG terminal(s) at Moheshkhali, Kutubdia and Paira port. Two long term LNG sales and purchase agreement (SPA) have already been signed with RasGas of Qatar and Oman Trading International (OTI) on G to G basis. Petrobangla is also accelerating extensive mining in the existing Barapukuria mine and has taken up project to develop and extract coal from Dighipara coal mine. I wish Petrobangla every success in its ongoing and future ventures. I hope this organization, through its relentless efforts by a dedicated workforce will continue to be a significant contributor in the prosperity of Bangladesh. Joy Bangla, Joy Bangabandhu Long Live Bangladesh. Nasrul Hamid, MP Annual Report 2017 05 Petrobangla Secretary Energy & Mineral Resources Division Ministry of Power, Energy & Mineral Resources Government of the People's Republic of Bangladesh Message I am happy to know that Annual Report, 2017 of Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) highlighting its activities for the financial year 2016-17, is going to be published. The report consists of different activities undertaken by Petrobangla with its' 13 companies and its future plans and priorities. My heartiest thanks and gratitude to all of its officials contributed in publishing the Annual Report. Energy is the key primary resource which is necessary for economic development and for keep running the wheels of Industry. Bangladesh achieved impressive economic growth over the recent years. It is striving to further accelerate the growth in order to materialize its vision to become a middle income country by 2021 which will obviously require secured and higher rate of energy supply. Energy division is taking numerous initiatives for enhancing and ensuring energy security so as to keep the pace of development moving. Petrobangla, the flagship organization in the country's primary energy sector entrusted with the responsibilities of exploring, developing, producing and marketing natural gas as well as extracting country's coal resources has been playing vital role in fuelling the economy. Rapid economic development, urbanization and industrialization have increase demand for energy. To meet the demand-supply gap, Petrobangla has been operating a number of projects for enhancing supply through exploration and development of oil and gas both in onshore and offshore as well as improving the transmission capacity of natural gas. In addition to its endeavor for boosting production and supply of gas from domestic sources, Petrobangla is also executing a number of projects for importing liquefied natural gas (LNG). It may be noted that, success of Petrobangla in one hand contributing to a great extent towards achieving' Vision 2021' and in other hand saving foreign currencies that is paid for importing petroleum products to keep on running production viz-a-viz development of the country to reach in the take off stage. Mining of coal and granite is also contributing in power and construction sector. I firmly believe that Petrobangla and its subsidiary companies will make further progress in future through sincerity, greater discipline, devotion, hard work and patriotism. I wish continuous progress of Petrobangla in the coming days. (Abu Hena Md. Rahmatul Muneem) 06 Annual Report 2017 Chairman Petrobangla Introduction Since the early 1960’s, indigenous natural gas has been playing very important role in the economy of Bangladesh.